The name ‘Panamá’ is often said to come from an indigenous word meaning “place of many fish”, supposedly referring to a fishing settlement the Spanish conquistadors stumbled upon. That said, the origin of the name is still debated to this day, with some sources suggesting it may instead be derived from the Panama tree, or from an indigenous word referring to an “abundance of butterflies”.

The flag of Panama is divided into four quarters, each carrying a specific meaning:

• • • Top left: White, symbolising peace and purity, with a blue five-pointed star representing honesty and purity in public life.

    • Top right: Red, representing the Liberal Party.

    • Bottom left: Blue, representing the Conservative Party.

    • Bottom right: White, symbolising peace, with a red five-pointed star representing authority and law.

Panama’s political system is similar to that of many other Central American countries, with the President serving as both head of state and head of government. Panamanians elect a President and Vice President every five years.

After decades marked by political instability and corruption, the country implemented a series of reforms aimed at strengthening human rights, democratic institutions and transparency. 

Today, Panama has the highest GDP per capita in Central America. While a significant portion of its revenue comes from tolls generated by the Panama Canal, trade, finance and tourism have become increasingly important pillars of the economy.